Fundamentals of Employee Benefits - Group Insurance

1 Under what condition would it be a good idea for an employer to offer supplemental long-term disability insurance at the employee's expense?

A The employee has requested the additional insurance on the employee benefit survey.

B The job the majority of the employees do is hazardous.

C The employer would like to attract and retain employees.

D The employer would like for the employees to pay for more of their own benefits.

2. An employer with fewer than 15 employees might be necessary to offer medical insurance benefits to a pregnant employer because the .......

A The state in which the employer is in requires it.

B Employers provide sick leave for employees.

C The employer offers medical insurance to non-pregnant employees.

3. Berks Manufacturing requires all of its nondisabled employees to retire when they become eligible for Medicare. What law is this employer breaking?

A Age Discrimination in Employment Act.

B Social Security Act

C Employee Retirement Income Security Act.

4. If an employee has $100,000.00 in group term life insurance, dies at the age of 67, what amount may be paid to the beneficiaries on his or her death if reductions are taken based on age?

A $67,000.00

B $65,000.00

C $35,000.00

D $89,000.00

5 Which of the following benefits may be included by an employer as extra coverage in accidental death and dismemberment insurance?

A Funeral cost are paid.

B The employer is given a temporary employee until the disabled employee can return

C The beneficiaries of the disabled employee are given transportation to the employee's rehabilitation facility.

D The deceased employee's body is flown home.

6. Sarah Mason has group life insurance thru her employer. One option she has at retirement is to ....

A Keep the group life insurance the same as it was before.

B Transfer the balance in the group life insurance account into an IRA.

C Transfer the life insurance benefit to a working spouse...

D Increase the amount of the pure insurance...

7 Which of the following comments are correct about paid time off (PTO) programs?

A A PTO program encourages employees to take time off for specific sick leave days, regardless of whether they are sick or not.

B PTO programs haven't impacted the average number of sick leave days that employees are likely to take.

C An employee is assured a specific bank of leave days, for any purpose, at a slightly reduced rate of pay.

D An employee is assured a specific amount of leave days, for any purpose at full pay.

8 According to The American With Disabilities Act (ADA), what is an example of reasonable accommodation that could be made by an employee?

A Installing elevators at each stairwell so that future disabled employees may have access to different floors.

B Providing a magnifying device at a computer screen for a visually impaired employee.

C Installing Braille on all signs so that future employees may be able to find there way around the building.

D Giving all employees sign language classed so that they may communicate with the deaf.

9 Suppose an employee has a chronic medical condition were allowed to choose a higher amount of group insurance benefits. This situation is an example of?

A determination of eligibility

B contributory selection

C adverse selection

D preexisting selection

10 What one of the following statements is correct about beneficiary designation of death benefits under group insurance?

A Some states prohibit naming the employer as the beneficiary.

B Without exception, an employee has the right to name his of her beneficiary.

C Some insurance contracts require that a change in a designated beneficiary be specific to the insurance company in writing.

D If an employee has no beneficiary; death benefits are paid to the state.

11 Bob wants to retire. He knows how much he will receive from his monthly pension. What will make him feel secure that inflation won't increase his bills so much that he can't afford to pay for them?

A COBRA

B. Social Security

C. COLA

D. ERISA

12 Under Title 79 of the Internal Revenue Code, if a 45 year old employee is provided a $100.00 of group insurance, what would be the employee's monthly taxable income on this insurance?

A $7.50

B $15.00

C $75.00

D $43.00

13 If an employer wants to provide insurance as a benefit, but cannot afford to provide a large amount, then the employer would probably use the ________ schedule contract provisions.

A earnings

B position

C combination benefit

D flat-benefit

14 The short term disability from an employer are combined with __________ to make sure that an employee doesn't receive benefits that are more that his/her salary.

A sick leave plans

B pension plan payments

C earnings from employment

D worker compensation payments

15 Under Section 79 of the Internal Revenue Code, if a 60-year old is provided with $180.000 of group life insurance, what would be the employee's annual taxable income on this insurance?

A $1029.60

B $1425.60

C $85.80

D $66.00

16 What is the tem used to describe a situation in which an employee maintains his/her group coverage after employment is terminated?

A Comity

B Underwriting

C Persistency

D Portability

17 Bob, a 10 year employee of Company X, is in the Army Reserve. Bob's unit was called to serve overseas for 3 months. Company X told Bob his position would be held for his until he returned.
Bob was permanently injured, losing an arm and a foot while fighting overseas. What will happen to Bob when he returns?

A Bob would receive no disability benefits.

B Bob would receive 100 percent of his pay after his 30 days of sick leave were used.

C Bob would receive 100 percent of his pay from Company X for the first six months of his disability and 60 percent thereafter.

D Bob would receive 100 percent of his pay after he returned to the United State.

18 Which one of the following choices would be a reason that an employee would provide group universal. life insurance to its employees?

A The coverage is versatile enough to meet the needs of all of the employees.

B This type of insurance is the main incentivize in attracting and retaining the best employees.

C The employees can continue to have insurance coverage after retirement.

D The life insurance can still be available at a group rate.

19 Regarding underwriting considerations, what information may an employee is required to provide to an insurance company to show that the company is insurable?

A An employee's health history.

B References from customers.

C The employers financial records

D The firms total number of employees.

20 Suppose an employee who earns $2000 dollars a month is entitled to a disability income benefit of 60 percent and a monthly disability benefit of $500.00 dollars under Social Security. He or she also receives a monthly family benefit of $450.00 and has a 70 percent benefit that's applicable to the total benefit payable from the long term plan.

Which one of the following approaches would give the employee the highest benefit payment?

A Full-integration

B Dual-integration

C Full-percentage

D Dual-percentage

17 years old, 1st year summer school at a Community College.

Employee Benefits - ?homework assignment at a Community College.